In recent articles, we have focused on Japan, “Land of the Rising Sun is Looking Up”, and on Mexico, “Cure for Montezuma’s Revenge – Covered Calls”, and today we will examine Germany. Signup now for PowerOptions free 14-day trial Germany has the third largest economy in the world after the United States and Japan. After World War II, Germany was split into the German Democratic Republic (East Germany) and the Federal Republic of Germany (West Germany). In 1990, the two countries were reunited into one country.
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Sub-Prime Lender Fire Sale: IndyMac (NDE) and (LEND)
Goldman Sachs has stated it believes it can get fire sale prices on companies in the subprime-lending market. The investment firm earned higher than expected first-quarter profits and expects to keep generating them by buying companies it feels are a good investment.
Cure for Montezuma’s Revenge – Covered Calls
Experienced travelers to Mexico know, “don’t drink the local water and don’t eat uncooked food washed with the local water”, or Montezuma will take his revenge once again. But what about investing in Mexican companies, is this to be avoided as well?
From Russia with Profits – Covered Calls
In the James Bond movie From Russia with Love a Soviet defector plans to sell the evil SPECTRE organization a decoder device allowing them to acquire Russian state secrets and the ability to destabilize the world order. But in the end James Bond prevails and the world is saved from catastrophe. After the collapse of the iron curtain and the breakup of the Soviet Union, the world order truly was destabilized with the Russian economy left in shambles. But the Russian economy is starting to gain some traction as denoted in a recent Wall Street Journal article (online.wsj.com).
No Room For Luxury at Ford (F) – Auto Industry Overview
There is speculation in the air about whether Ford will retain its majority ownership of Jaguar and Land Rover as the formerly 2nd largest car manufacturer announced it will no longer be the majority share holder in the Aston Martin luxury brand. Some analysts feel the time may be right for Ford to get an attractive bid for its luxury brands.
Land of the Rising Sun is Looking Up
Japan’s GDP grew at a very nice 1.3% in the last quarter of 2006. Japan’s economy was in the doldrums for over a decade and in the last few years has started to perk up. In the early 1970’s the term “Japan Inc” was coined, as it appeared the Japanese were going to dominate the globe with their business and manufacturing acumen. But “Japan Inc” turned into “Japan Red Ink” as Japan experienced a severe real estate bubble and faced increasing competition from Korea and China.
Boring Company Wins ‘Product of the Year’ – AVX Corp (AVX)
It turns out some of the eggheads who were playing with their electronics kit while you were trying to make it to the 10th level of the Legend of Zelda may have stumbled across something. It’s called a low inductance decoupling capacitor. And no, it’s not a device you can hook up to a DeLorean to go back in time.
U.S. Trade Deficit – Ocean Shipping – Covered Calls
The U.S. trade deficit declined 3.8% from December to January. The trade deficit decline was mostly a result of higher exports. While imports did decline, it was only slightly. The trade deficit with China continues to widen — clocking in a 12% change from December to January.
Exxon Mobile (XOM) Looking to N. Africa and S. America to Expand Production
A team of corporate leaders from Exxon Mobile (XOM) met with the president of Guyana this week as the oil companies try to elbow and box out their competitors. It is expected border disputes with neighboring Suriname will be cleared up by the UN shortly, and this will clear the way for companies to invest in off shore drilling.
Jim Cramer Gives Opinion on Warren Buffet’s Portfolio
In a video interview yesterday, Jim Cramer (videoplayer.thestreet.com) analyzed several of Warren Buffet’s stock positions. Cramer stated, “There are two Warren Buffet’s. There is the Warren Buffet pre-three years ago… Where if you bought on the announced date what he was buying, you made a lot of money. In the last three years, if you bought what he bought, you under performed.” Cramer supposed Buffet has either lost his edge or he is taking an even longer-term view.